Basic human need or inflated asset bubble?
Today's episode is about the current reality of the US housing market (and stock market, to some degree) and how it's—paradoxically—not actually good for anyone, renters and owners alike. The one group it is benefiting? Investors.
The episode dives into why I think a cooldown is inevitable, and focuses more on why human shelter turning into an inflated asset class is dangerous for everyone who needs a house to live in. Look no further than Canada’s precarious situation and increasing homelessness for a cautionary tale.
My guest this week (Brandon of Mad FIentist fame) lends his perspective as someone who narrowly escaped the bubble burst in 2008 and ended up losing money on his next property—only to be priced out entirely in 2022. For context, Brandon retired a multimillionaire at age 34. He rents.